The Reserve Bank of India on Wednesday informed Bombay HC that it acted according to law and that there is no violation of former ICICI Bank chief Chanda Kochhar’s fundamental rights by its approval of her termination from the lender. In its affidavit, it said the decision is fair and within jurisdiction and “in good faith after properly considering the request of the ICICI Bank”.
on Wednesday informed Bombay high court that it acted according to law and that there is no violation of former
’s fundamental rights by its approval of her termination from the lender.
In its affidavit filed before a bench of Justices Ranjit More and S P Tavade, the RBI said it had acted based on statutory powers vested in it.
The decision is fair and not arbitrary and within jurisdiction and “in good faith after properly considering the request of the ICICI Bank”. “It is not the function of the RBI, while exercising such power, to micromanage the action of a bank and substitute commercial wisdom for that of the bank,’’ said the affidavit.
“While granting approvals, it is looking at the issue from a regulatory angle—like whether the termination is intended to defeat any legal or regulatory action and any adverse impact on interest of
and or the bank on the
,’’ said the RBI.
Kochhar’s counsel, however, argued that the RBI approval is invalid as it is post facto and argued that the HC can hear her plea on violation of her fundamental rights even though the termination is by a private bank, since the approval needed for it is based on the bank’s statutory duty.
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